SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q


(Mark One)

(X)  QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

               For the thirty-nine weeks ended September 27, 1997

( )  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 or  15(d)  OF THE  SECURITIES
     EXCHANGE ACT OF 1934

         For the transition period from            to


                          Commission File Number 1-5084

                              TASTY BAKING COMPANY

             (Exact name of registrant as specified in its charter)

       Pennsylvania                                23-1145880
  (State of Incorporation)             (IRS Employer Identification Number)


           2801 Hunting Park Avenue, Philadelphia, Pennsylvania 19129
               (Address of Principal Executive Offices) (Zip Code)


                                 (215) 221-8500
              (Registrant's Telephone Number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by  Section  13 or (15(d)  of the  Securities  Exchange  Act of 1934
during the preceding 12 months (or for such shorter  period that the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days.

                    Yes X                No

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

   Common Stock, par value $.50                          6,234,039
        (Title of Class)                       (No. of Shares Outstanding
                                                    at November 7, 1997)

                 INDEX OF EXHIBITS IS LOCATED ON PAGE 10 OF 11.


                                  PAGE 1 of 10

<PAGE>

                      TASTY BAKING COMPANY AND SUBSIDIARIES

                                      INDEX

                                                                           Page

PART I.       FINANCIAL INFORMATION

Item 1.       Financial Statements

              Consolidated Condensed Balance Sheets
              September 27, 1997 and December 28, 1996.......................3

              Consolidated Condensed Statements of Operations
              Thirteen Weeks and Thirty-nine Weeks Ended
              September 27, 1997 and September 28, 1996......................4

              Consolidated Condensed Statements of Cash Flows
              Thirty-nine Weeks Ended September 27, 1997 and
              September 28, 1996.............................................5

              Notes to Consolidated Condensed Financial Statements...........6

Item 2.       Management's Discussion and Analysis of Financial
              Condition and Results of Operations..........................7-8


PART II.      OTHER INFORMATION

Item 4.       Submission of Matters to a Vote of Security Holders............9

Item 6.       Exhibits and Reports on Form 8-K...............................9

Signature     ..............................................................10

                                  PAGE 2 of 10
<PAGE>

PART I.       FINANCIAL INFORMATION
Item 1.       Financial Statements

                      TASTY BAKING COMPANY AND SUBSIDIARIES
                      CONSOLIDATED CONDENSED BALANCE SHEETS
                                   (unaudited)

<TABLE>
<CAPTION>
                                                  September 27, 1997  December 28, 1996
------------------------------------------------------------------------------------
<S>                                                       <C>              <C>     
Current assets:
     Cash                                                 $221,450         $233,366
     Accounts and notes receivable, net of
       allowance for doubtful accounts                  20,392,524       16,962,591
     Inventories:
       Raw materials                                     1,899,991        1,626,877
       Work in progress                                    644,446          563,381
       Finished goods                                      795,581          665,254
                                                       -----------      -----------
                                                         3,340,018        2,855,512
     Deferred income taxes, prepayments and other        3,289,501        2,726,014
                                                       -----------      -----------
       Total current assets                             27,243,493       22,777,483
                                                       -----------      -----------
Property, plant and equipment:                         146,975,688      139,349,055
     Less accumulated depreciation                     103,688,860       98,375,648
                                                       -----------      -----------
                                                        43,286,828       40,973,407
                                                       -----------      -----------
Long-term receivables                                   11,484,083       10,288,159
                                                       -----------      -----------
Deferred income taxes                                   10,235,656       10,235,656
                                                       -----------      -----------
Miscellaneous assets and deferred charges                2,970,797        3,153,659
                                                       -----------      -----------
Total assets                                           $95,220,857      $87,428,364
                                                       ===========      ===========
Current liabilities:
     Current portion of long-term debt                     $27,104          $58,340
     Current obligations under capital leases              692,870          587,336
     Notes payable, banks                                2,750,000               --
     Accounts payable                                    4,469,125        3,963,610
     Accrued liabilities                                 7,507,181        6,533,612
     Accrued income taxes                                  165,772        1,474,887
                                                       -----------      -----------
        Total current liabilities                       15,612,052       12,617,785
                                                       -----------      -----------
Long-term debt, less current portion                     6,282,283        5,302,416
                                                       -----------      -----------
Long-term obligations under capital leases,
     less current portion                                  586,020        1,131,118
                                                       -----------      -----------
Accrued pensions and other liabilities                  12,117,452       11,203,178
                                                       -----------      -----------
Postretirement benefits other than pensions             19,265,727       18,267,013
                                                       -----------      -----------
Shareholders' equity:
     Common stock                                        3,646,594        3,644,544
     Capital in excess of par value of stock            30,230,206       29,742,513
     Retained earnings                                  24,573,159       22,265,220
                                                       -----------      -----------
                                                        58,449,959       55,652,277
     Less:
     Treasury stock, at cost                            16,712,320       16,329,055
     Management Stock Purchase Plan
       receivables and deferrals                           380,316          416,368
                                                       -----------      -----------
                                                        41,357,323       38,906,854
                                                       -----------      -----------
Total liabilities and shareholders' equity             $95,220,857      $87,428,364
                                                       ===========      ===========
</TABLE>

     See accompanying notes to consolidated condensed financial statements.

                                  Page 3 to 10
<PAGE>
                      TASTY BAKING COMPANY AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                                   (unaudited)

<TABLE>
<CAPTION>

                                          For the Thirteen Weeks Ended       For the Thirty-nine Weeks Ended
                                      Sept. 27, 1997     Sept. 28, 1996     Sept. 27, 1997     Sept. 28, 1996
--------------------------------------------------------------------------------------------------------------
<S>                                     <C>                <C>               <C>                <C>         
Gross Sales                             $53,651,996        $52,755,993       $166,937,578       $158,890,911

Less discounts and allowances           (17,607,128)       (16,734,341)       (54,463,859)       (49,176,383)
                                      -------------      -------------      -------------      -------------

Net Sales                               $36,044,868        $36,021,652       $112,473,719       $109,714,528
                                      -------------      -------------      -------------      -------------

Costs and expenses:
     Cost of sales                       22,478,742         22,332,536         69,261,592         68,484,501

     Depreciation                         1,847,134          1,838,336          5,402,627          5,490,835

     Selling, general and
        administrative                   10,077,778         10,472,900         30,637,033         30,068,214

     Interest expense                       131,732            134,564            417,367            362,138

     Other income, net                     (413,500)          (446,541)        (1,225,214)        (1,355,853)
                                      -------------      -------------      -------------      -------------

                                         34,121,886         34,331,795        104,493,405        103,049,835
                                      -------------      -------------      -------------      -------------

Income before provision
     for income taxes                     1,922,982          1,689,857          7,980,314          6,664,693

Provision for income taxes                 (726,455)          (637,636)        (3,063,360)        (2,556,349)
                                      -------------      -------------      -------------      -------------

Net income                               $1,196,527         $1,052,221         $4,916,954         $4,108,344
                                      =============      =============      =============      =============


Average common shares outstanding         6,340,140          6,185,551          6,260,762          6,177,032

Per share of common stock:

     Net income                                $.19               $.17               $.79               $.67
                                      =============      =============      =============      =============

     Cash dividend                             $.14               $.14               $.42               $.42
                                      =============      =============      =============      =============
</TABLE>

     See accompanying notes to consolidated condensed financial statements.

                                  Page 4 of 10
<PAGE>

                      TASTY BAKING COMPANY AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                   (unaudited)
<TABLE>
<CAPTION>
                                                        For the Thirty-nine Weeks Ended
                                                       Sept. 27, 1997     Sept. 28, 1996
--------------------------------------------------------------------------------------
<S>                                                       <C>              <C>     
Cash flows from (used for) operating activities
     Net income                                          $4,916,954       $4,108,344
     Adjustments to reconcile net income to net
      cash provided by operating activities:
         Depreciation                                     5,402,627        5,490,835
         Amortization                                       107,100           52,431
         Other                                            2,080,853       (1,327,972)
     Changes in assets and liabilities
      affecting operations                               (4,425,824)         836,077
                                                        -----------      -----------

     Net cash from operating activities                   8,081,710        9,159,715
                                                        -----------      -----------

Cash flows from (used for) investing activities
     Proceeds from owner/operator's loan repayments       2,526,332        3,203,559
     Purchase of property, plant and equipment           (7,769,331)      (8,271,305)
     Loans to owner/operators                            (3,728,396)      (2,539,257)
     Other                                                   46,536           63,280
                                                        -----------      -----------

     Net cash used for investing activities              (8,924,859)      (7,543,723)
                                                        -----------      -----------

Cash flows from (used for) financing activities
     Additional long-term debt                            2,000,000        5,000,000
     Proceeds from sale of common stock                     181,181               --
     Dividends paid                                      (2,609,015)      (2,597,892)
     Payment of long-term debt                           (1,490,933)      (4,692,366)
     Net increase in short-term debt                      2,750,000          700,000
                                                        -----------      -----------

     Net cash from (used for) financing activities          831,233       (1,590,258)
                                                        -----------      -----------

     Net increase (decrease) in cash                        (11,916)          25,734

     Cash, beginning of year                                233,366           85,104
                                                        -----------      -----------

     Cash, end of period                                   $221,450         $110,838
                                                        ===========      ===========

     Supplemental Cash Flow Information:
     Cash paid during the period for:
         Interest                                          $348,833         $343,217
                                                        ===========      ===========
         Income taxes                                    $4,727,240       $2,221,142
                                                        ===========      ===========
</TABLE>

     See accompanying notes to consolidated condensed financial statements.

                                  Page 5 of 10
<PAGE>

                      TASTY BAKING COMPANY AND SUBSIDIARIES
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS


1.   Stock Split
On October 24, 1997, the Board of Directors approved a five-for-four stock split
of the company's  common stock for the  shareholders of record as of November 7,
1997,  to be  distributed  on  December  1,  1997.  Restatements  of the  shares
outstanding or per share amounts have not been provided for the current  period.
Had the transaction  occurred prior to the release of the financial  statements,
restatements  of net income per common  share  would have been $.15 and $.14 for
the thirteen weeks ended September 27, 1997 and September 28, 1996 respectively,
and $.63 and $.53 for the thirty-nine weeks then ended.

2.   Interim Financial Information
In the opinion of management,  the accompanying unaudited consolidated condensed
financial  statements  contain  all  adjustments   (consisting  of  only  normal
recurring  accruals)  necessary to present fairly the financial  position of the
company as of September  27, 1997,  and December 28, 1996 and the results of its
operations for the thirteen and  thirty-nine  weeks ended September 27, 1997 and
September 28, 1996 and cash flows for the thirty-nine  weeks ended September 27,
1997 and September 28, 1996. These unaudited  consolidated  condensed  financial
statements  should  be read  in  conjunction  with  the  consolidated  financial
statements  and  footnotes  thereto  in the  company's  1996  Annual  Report  to
Shareholders.  In addition,  the results of operations for the thirty-nine weeks
ended  September  27, 1997 are not  necessarily  indicative of the results to be
expected for the full year.

Advertising  expenses and certain  other expense items are charged to operations
in the year incurred.  However,  for interim reporting purposes the expenses are
charged to operations on a pro-rata basis over the company's accounting periods.
For the  thirty-nine  weeks ended September 27, 1997 and September 28, 1996, the
difference  between the actual  expenses  incurred and the  expenses  charged to
operations was not significant.

3.   Net Income Per Share
Per share amounts are based on the weighted  average number of common shares and
equivalent shares outstanding during the quarter and year to date.

                                  Page 6 of 10
<PAGE>

                      TASTY BAKING COMPANY AND SUBSIDIARIES

Item 2.  Management's Discussion and Analysis of
         Financial Condition and Results of Operations

Results of Operations

For the third quarter of 1997, the company  realized net income of $1,196,527 or
$.19 per share  versus  $1,052,221  or $.17 per share for the third  quarter  of
1996. These results represent increases of 13.7% and 11.8%, respectively.

For the  thirty-nine  weeks ended  September 27, 1997, the company  realized net
income of $4,916,954  or $.79 per share versus  $4,108,344 or $.67 per share for
the  comparable  period in 1996,  representing  an  increase of 19.7% and 17.9%,
respectively.

For the third quarter,  gross sales increased 1.7% to  $53,651,996,  compared to
$52,755,993 last year. The increase in gross sales for the third quarter of 1997
resulted primarily from price increases instituted by the company.  Gross sales,
less  discounts  and  allowances,  resulted  in a net sales  increase  of .1% to
$36,044,868 compared to $36,021,652 reported last year.

Cost of sales,  as a percentage of net sales,  was 62.4% and 62.0% for the third
quarters of 1997 and 1996,  respectively.  The  increase in the current  quarter
resulted from reduced  efficiencies due to continued product  development at the
Oxford facility.

Selling,  general  and  administrative  expenses  for the third  quarter of 1997
decreased by $395,122 or 3.8% compared to the  comparable  period in 1996.  This
change resulted  primarily from certain  consulting  expenses that were incurred
only in the third quarter of 1996.

Interest  expense  remained  relatively  unchanged for the third quarter of 1997
versus the third  quarter of 1996.  The  decrease in other  income,  net for the
third quarter of 1997 was the result of a decrease in rental income.

The effective  tax rates for each of the quarters  ended  September 27, 1997 and
September  28,  1996 were 37.8% and 37.7%,  respectively,  which  compares  to a
federal  statutory rate of 34%. The principal reason for the difference  between
the effective rates and the statutory rate in the third quarter of 1997 and 1996
was the effect of state income taxes.

In November,  1995, the company received a proposed assessment from the Internal
Revenue  Service  (IRS) for  employment  taxes  based on an  assertion  that the
company's  independent   owner/operators  were  employees  and  not  independent
contractors.  The company  continues  to attempt to resolve its dispute with the
IRS concerning the treatment of its independent  owner/operators for payroll tax
purposes.  A "Closing  Agreement" (the Agreement) is currently being  negotiated
between the company and the IRS. If the  Agreement is accepted by both  parties,
the company would incur a pre-tax charge of  approximately  $1.5 to $2.0 million
for tax years 1990-1997  including  related expenses.  In addition,  the company
would  agree  to  certain   changes  in  the   treatment   of  its   independent
owner/operators  for payroll tax purposes  effective  January 1, 1998.  However,
within the Agreement, there are issues that remain in dispute, some of which the
company  will not agree to and could cause the company to litigate  its position
if a satisfactory resolution is not achieved.


                                  Page 7 of 10
<PAGE>

Financial Condition

The company has  consistently  demonstrated  the ability to generate  sufficient
cash flows from  operations.  Bank  borrowings,  under  various  lines of credit
arrangements,  are used to supplement cash flows from operations  during periods
of cyclical  shortages.

For the  thirty-nine  weeks ended  September 27, 1997,  net cash from  operating
activities  decreased  by  $1,078,005  to  $8,081,710  from  $9,159,715  for the
comparable  period in 1996. The decrease in net cash from  operating  activities
was  principally  due to an increase in income tax  payments  and an increase in
accounts receivable. These reductions to net cash from operating activities were
partially  offset by an  increase  in net  income  and a  reduction  in  pension
contributions compared to 1996.

Net cash used for investing activities for the thirty-nine weeks ended September
27, 1997 increased by $1,381,136 relative to the same period in 1996 principally
due to an increase in owner/operator loan activity.

Net cash from financing activities for the thirty-nine weeks ended September 27,
1997 increased by $2,421,491 relative to the same thirty-nine weeks in 1996. The
increase is primarily the result of an increase in short-term debt.

For the  remainder  of 1997,  the  company  anticipates  that  cash  flows  from
operations,  along with the continued  availability of bank lines of credit, the
revolving  credit  agreement  and  other  long-term   financing,   will  provide
sufficient cash to meet operating and financing requirements.


                                  Page 8 of 10
<PAGE>

                      TASTY BAKING COMPANY AND SUBSIDIARIES

PART II. OTHER INFORMATION

Item 4.  Submission of Matters to a Vote of Security Holders

         No matters  were  submitted  to a vote of security  holders  during the
         third quarter of the fiscal year covered by this report.


Item 6.  Exhibits and Reports on Form 8-K.

         (a) Exhibits: Exhibit 27 - Financial Data Schedule

         (b) Reports on Form 8-K

         The  registrant  did not file a report on Form 8-K during the  thirteen
         weeks ended September 29, 1997.


                                  Exhibit Index

                      Exhibit 27 - Financial Data Schedule



                                  Pgae 9 of 10

<PAGE>

                      TASTY BAKING COMPANY AND SUBSIDIARIES

                                    SIGNATURE


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                              TASTY BAKING COMPANY
                                  (Registrant)



 November 7, 1997                              /s/ John M. Pettine
    (Date)                                       JOHN M. PETTINE
                                                VICE PRESIDENT AND
                                            CHIEF FINANCIAL OFFICER
                                   (PRINCIPAL FINANCIAL AND ACCOUNTING OFFICER)





                                  Page 10 of 10